California Attorney General Rob Bonta and the California Air Resources Board (CARB) have announced a $236.5 million settlement with Hino Motors, Ltd., a subsidiary of Toyota Motors Corporation. This settlement is part of a larger federal agreement totaling $1.5 billion.
The settlement allocates approximately $30.3 million to compensate CARB’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). It also resolves claims that Hino fraudulently obtained low emissions vehicle subsidies from the state and allegedly violated California laws, including the False Claims Act and Unfair Competition Law. Additionally, about $206 million will be paid to CARB for civil penalties and mitigation programs aimed at reducing excess nitrogen oxide (NOx) emissions. Hino has agreed to provide a voluntary fix for some affected vehicles at no cost to owners.
CARB's investigation began in 2019 after reviewing Hino's certification applications, which revealed inconsistencies in emissions data. Working alongside the U.S. Environmental Protection Agency, further testing uncovered undisclosed auxiliary emission control devices on certain heavy-duty engines used in both on-road trucks and off-road equipment from model years 2010-2019. These engines were found to emit NOx levels exceeding federal and state standards.
“Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies,” stated Attorney General Bonta. “At the California Department of Justice, we will continue to hold manufacturers like Hino accountable for breaking California’s laws.”
"CARB's rigorous air quality regulations protect communities from harmful pollutants," said CARB Chair Liane Randolph. "Manufacturers should know that we will continue to use our enforcement authority."
The Attorney General's office discovered that Hino defrauded CARB into accepting its trucks into HVIP by falsely claiming compliance with state and federal law since 2012. Under HVIP, dealers sold discounted Hino trucks using state funds for point-of-sale discounts, submitting vouchers ranging from $7,500 to $37,000 each for payment by CARB.
After voluntarily disclosing false statements in its HVIP application, it was found that Hino violated several state laws by altering emission test data or fabricating results without conducting tests.
Copies of the consent decrees and settlement agreement are available online.